Correlation Between ASURE SOFTWARE and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and Quaker Chemical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ASURE SOFTWARE and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and Quaker Chemical, you can compare the effects of market volatilities on ASURE SOFTWARE and Quaker Chemical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ASURE SOFTWARE with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and Quaker Chemical.
Diversification Opportunities for ASURE SOFTWARE and Quaker Chemical
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASURE and Quaker is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and ASURE SOFTWARE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ASURE SOFTWARE are associated (or correlated) with Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Quaker Chemical go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and Quaker Chemical
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 1.57 times more return on investment than Quaker Chemical. However, ASURE SOFTWARE is 1.57 times more volatile than Quaker Chemical. It trades about 0.01 of its potential returns per unit of risk. Quaker Chemical is currently generating about -0.01 per unit of risk. If you would invest 990.00 in ASURE SOFTWARE on September 1, 2024 and sell it today you would lose (70.00) from holding ASURE SOFTWARE or give up 7.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASURE SOFTWARE vs. Quaker Chemical
Performance |
| Timeline |
| ASURE SOFTWARE |
| Quaker Chemical |
ASURE SOFTWARE and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and Quaker Chemical
The main advantage of trading using opposite ASURE SOFTWARE and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, Quaker Chemical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.| ASURE SOFTWARE vs. PennyMac Mortgage Investment | ASURE SOFTWARE vs. Autohome ADR | ASURE SOFTWARE vs. bet at home AG | ASURE SOFTWARE vs. NURAN WIRELESS INC |
| Quaker Chemical vs. Transport International Holdings | Quaker Chemical vs. TSOGO SUN GAMING | Quaker Chemical vs. Air Transport Services | Quaker Chemical vs. EVS Broadcast Equipment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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